Emission Modeling and Pricing in Dynamic Traffic Networks

This paper proposes an emission pricing model for dynamic traffic networks with single destinations. The model contains two sub-problems: a system optimum dynamic traffic assignment problem and a first-best dynamic emission pricing scheme. It proves that under certain conditions, there exists a free-flow optimal solution to minimize the generalized system cost including total travel times and total emissions. The optimal first-best emission pricing can then be determined by solving an optimal control problem, using the free-flow dynamic system optimal solution as the input. Numerical results are provided to illustrate the proposed model and its solution method.